Handling Short Sale Home Owner Expectations

Whenever you meet with a distressed home owner(s) for the first time, you must set the expectations for the short sale process. Setting up and then following through with expectations will lead to seller(s) satisfaction and more referrals. Furthermore, this will prevent you from having the seller(s) call you every time he/she has a question, or receives a letter in the mail/phone call, from the lender.

 Prior to meeting with the home owner:

• Effectively communicate the need for cooperation in retrieving the necessary financial documents the lender requires. Have the seller(s) prepare/collect these prior to your arrival.

 • Have the lender’s short sale package prepared with the seller(s) name and address filled in (where applicable). Have a one page print-out of the lender short sale timeline for the seller(s).

• Bring a camera for exterior and interior photos.

• Lastly, make sure the seller(s) makes a copy of the keys, so you can put a lockbox on the day you arrive.

How to set up seller expectations:

1. When arriving to the property for the first time, make sure to review the interior and exterior with the seller(s). Let them know that while you’re reviewing the property, you’re also going to be taking photos, in an effort to maximize time and efficiency.

2. Upon completion, sit down with the seller(s).

3. Take out the short sale package, and review each page of the paperwork with the seller(s), allowing them to become more comfortable with you, the material and the process in general.

4. Upon completion, ask for the financial documents you previously discussed, prior to your arrival. Explain why these documents are required to facilitate the short sale. Address them, but don’t dwell on them.

5. Ask the seller(s) if they have any questions, before proceeding to have them fill out and sign the necessary short sale package documents.

6. Upon completion of the short sale package and collection of the financial documents, explain the expected timeline AFTER receiving a reasonable contract of sale. Review the print-out with the seller(s).

7. Address that ANY and ALL documents the lender sends them should be immediately forwarded to your attention.

8. Lastly, let the seller(s) know that the financial documents will have to be updated each month, up until there is an accepted contract of sale.

 Remember always the sellers are in a hardship or their mortgage would be current and they would have no need for our services. They are emotional and more than likely have had a complete runaround and waste of time with the Loan Modification dept. with their lenders and are scared about the looming foreclosure

Comments

[Stuart]

I totally agree with you, whenever we meet a distressed home maker, first we must set the expectations for the short sale process. Few things must be followed before the home owner. Nice post, thanks for sharing,